Should the 1.1060 zone give up anytime soon, the euro will target the 1.1000 level next
The dollar index extended gains to notch fresh mid-2020 highs marginally below the 98.00 figure before retreating to the 97.40 area amid Powell’s more dovish comments on Wednesday. As such, EURUSD derailed the 1.1100 figure for the first time since May 2020 to notch fresh long-term lows just below the 1.1060 region. Still, the pair came off lows to finish the day above 1.1100 as dollar demand had eased somehow. The common currency failed to extend the bounce, however, as traders stay cautious amid the developments surrounding Russia and Ukraine. As such, the pair came back under selling pressure, holding slightly off the mentioned lows. Should the 1.1060 zone give up anytime soon, the euro will target the 1.1000 level next. On the upside, a decisive bounce above 1.1120 could somehow ease the selling pressure surrounding the common currency.
GBPUSD bounced back from fresh 2022 lows to get back to the 1.3400 figure on Wednesday as the dollar came off peaks after less hawkish comments from the Fed’s Powell. However, the pair failed to reserve the upside bias and came back under pressure on Thursday due to the resurgent demand for the greenback. The prices are holding above the 1.3370 region, losing 0.14% on the day during the European trading hours. Should this support withstand the pressure, a bounce towards 1.3400 can be expected again. On the four-hour charts, GBPUSD is now clinging to the 20-SMA, a break below which would add to downside pressure in the near term. In a wider picture, GBP bears remain in control as long as the prices stay below the 100- and 20-DMAs, currently around 1.3500.
USDJPY extends yesterday’s rally that took the prices back above the 20-DMA, currently at 115.30. The pair extended the ascent to mid-February highs around 115.80 and was last seen clinging to the upper end of the range. Should the bullish momentum persist in the short term, the greenback may regain the 116.00 level to retarget multi-year highs. However, it looks like the safe-haven yen demand will reemerge eventually and take the prices back below 115.00 amid rising geopolitical tensions in combination with the Fed’s more measured approach to hiking rates because of the situation surrounding Ukraine. On the four-hour timeframes, the RSI looks directionless in the neutral territory, suggesting the pair could struggle to extend the ascent in the immediate term.
Gold prices have steadied on Thursday following the recent downside correction from fresh multi-year peaks registered around $1,975 last week. The yellow metal has settled below the $1,930 area during the European hours, retaining a slight bearish bias as risk trades have bounced somewhat. At this point, as long as the bullion stays below the $1,950 region, bears retain control in the short term. The metal could struggle to regain this level due to a stronger dollar that stays just below mid-2020 highs. In a negative scenario, the XAUUSD pair will likely slip further from the mentioned highs, bringing the $1,900 handle back into the market focus. However, it looks like the bullion will stay above the ascending 20-DMA, currently at $1,880. On the upside, a decisive break above the $1,935 immediate barrier would open the door towards $1,950.